State Resources for ADU’s

ADU Resources and Planning Information - A collection of documents to assist homeowners.

Loans may be used to repair, improve or modernize homes or remove health and safety hazards. Grants must be used to remove health and safety hazards
Maximum loan is $40,000, Maximum grant is $10,000, Loans and grants can be combined for up to $50,000 in assistance
What are the terms?
- Loans are termed for 20 years
- Loan interest rate is fixed at 1%
- Full title service is required if the total outstanding balance on Section 504 loans is greater than $25,000
- Grants have a lifetime limit of $10,000
- Grants must be repaid if the property is sold in less than 3 years

Two loans from maine housing, up to 100% of total project costs
First loan is what rents can carry (after vacancy and costs)
Second loan is subsidy 0% 45 years
6% 30 year loan
80% AMI- both income and rents restricted, only has to test income once
Both balances due at 45 years, have to refinance
Allows developer fee up to $15k/unit
$25,000,000 available in 2024, $200k/new construction, $153k for adaptive reuse, will fund 125 units, maybe 10 projects
Program opening this year likely September 2024, deadline might be November or December.

New and existing single family homes.
Owner-occupied, 2- to 4-unit apartment buildings.
Condominiums.
Permanently attached mobile homes built within the last 20 years.
(Mobile homes may be located on owned or leased land.)

Loans may be used to repair, improve or modernize homes or remove health and safety hazards. Grants must be used to remove health and safety hazards
Maximum loan is $40,000, Maximum grant is $10,000, Loans and grants can be combined for up to $50,000 in assistance
What are the terms of the loans?
- 5-year loans
- Section 523 loans: 3% interest rate
- Section 524 loans: below-market-rate established and published monthly, fixed at closing.

Eligible homeowners can borrow up to $7,500 over 5-10 years at 4.99% for energy efficient updates.

ADU’s in Massachusetts- Details about the 2024 Affordable Home Act.

ADU's in Boston- Learn more about ADUs and how to build one in Boston.

Home Modification Loan Program - Up to 50k at 0% interest to build an ADU for those who qualify.

Start Designing Your ADU